Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE 

SPOT NIFTY : The benchmark index, Nifty, erased almost 50 per cent of Tuesday’s gains. Last week, the equity market experienced the highest volatility. A huge gap-down of over 300 points on Monday, followed by a massive recovery the next day, has triggered the stop losses on both sides. Interestingly, Nifty formed an inside bar on two occasions i.e. last Friday and today, which is the day of the weekly expiry. 

Meanwhile, on the weekly chart, it faced resistance at the sloping trendline. Nifty declined 0.26 per cent below the 20-DMA on Thursday, and Bollinger Bands narrowed further. The index may consolidate between the zone of 17,166 and 17,778 for now. Bollinger Bands also suggest the same.